What is the timeline for the National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024? Do persons selling goods online have to pay taxes?

What is the timeline for the National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024

The Deputy Minister of Industry and Trade issued Decision 2821/QD-BCT of 2024 concerning the organization of the "National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024."

According to sub-item 1, Section 2 of the Plan for organizing the "National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024," issued along with Decision 2821/QD-BCT of 2024, the timeline for the National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024 is stipulated as follows:

- National E-commerce Week: from November 25, 2024, to December 1, 2024.

- 60 hours of Vietnam Online Shopping Day - Online Friday 2024: from 0 hours Friday, November 29, 2024, to 12 hours December 1, 2024.

What is the timeline for the National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024? (Image from Internet)

What are activities of the Vietnam E-commerce Week and Online Friday 2024?

Based on sub-item 4, Section 2 of the Plan for organizing the "National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024," issued along with Decision 2821/QD-BCT of 2024, the activities to be carried out during the National E-commerce Week and Online Shopping Day of Vietnam - Online Friday 2024 are regulated as follows:

- Implementing the "National E-commerce Week", which includes: direct and online seminars with topics on e-commerce and digital technology; interactive activities for consumers in the online environment; communication, dissemination, and experience activities for consumers, businesses, and management agencies.

- Executing "60 hours of Vietnam Online Shopping Day – Online Friday 2024" on the Program's websites and applications, providing nationwide discount codes on platforms and promotional programs for goods/services of major businesses operating in production and distribution through e-commerce.

- Organizing an Experience Space, exhibition of genuine products, and digital transformation solutions of Vietnamese enterprises in Hanoi city and centrally governed provinces and cities. Enterprises participate in displaying and introducing digital technology products and e-commerce solutions for direct consumer participation to promote regional e-commerce connections, building trust with businesses and consumers regarding products and services.

- Organizing activities to respond to the E-commerce Week to elevate the spirit of businesses and consumers to "breakthrough" at the year's end in all areas, creating a connection between strong spirit and steel spirit in business activities, encouraging the participation of all subjects in e-commerce and traditional transactions.

Do persons selling goods online have to pay taxes in Vietnam?

Based on Article 4 of Circular 40/2021/TT-BTC which stipulates the principles of calculating personal income tax (PIT) and value-added tax (VAT) as follows:

Principles of Tax Calculation

1. The principles of tax calculation for business households and individuals conducting business activities are implemented according to current legal regulations on VAT, PIT, and related legal normative documents.

2. Business households and individuals with an annual revenue from production and business activities in the calendar year of up to 100 million VND are not required to pay VAT and PIT according to legal regulations on VAT and PIT. Business households and individuals are responsible for declaring taxes accurately, honestly, and fully, and submitting tax dossiers on time; they shall bear legal responsibility for the accuracy, honesty, and completeness of tax dossiers as prescribed.

3. For business households and individuals operating in the form of groups of individuals or households, the revenue level of up to 100 million VND/year to determine individuals not liable for VAT and PIT is determined for one (01) sole representative of the group of individuals or households in the tax year.

Accordingly, any business household or individual conducting online sales with a revenue from 100 million VND or more is required to pay VAT and PIT as prescribed.

How to calculate PIT when selling goods online in Vietnam?

Based on Clause 3, Article 10 of Circular 40/2021/TT-BTC, the PIT amount payable is calculated as follows:

In which:

- Taxable PIT revenue is determined as follows:

Taxable PIT revenue for business households and individuals is the revenue inclusive of tax (if applicable) from the total sales of goods, processing fees, commissions, service provision revenues arising during the tax calculation period from production, business goods, and services activities, including bonuses, support for sales achievements, promotions, trade discounts, payment discounts, monetary or non-monetary support; price supports, surcharges, additional fees received as prescribed; compensation for contract violations, other compensations; and other revenues that business households and individuals are entitled to, irrespective of whether they have received payment.

- PIT Tax Rate is as guided in Appendix 1 issued with Circular 40/2021/TT-BTC

Note: For business households and individuals operating in multiple fields or industries, they must declare and calculate tax according to the tax rate on revenue applicable to each field or industry.

In cases where business households and individuals do not determine taxable revenue for each field or industry, or the determination is not consistent with actual business activities, the tax authority shall fix the taxable revenue for each field or industry according to legal provisions on tax administration.